Amarillo Gold Drills 19 Metres at 2.47 g/t Au at Saddle Zone in Proposed Posse Pit in Brazil
February 19 2013 - 8:46AM
Marketwired Canada
Amarillo Gold Corp. (TSX VENTURE:AGC) ("Amarillo" or the "Company") is pleased
to announce the following drill results from infill drilling of the saddle zone
within, and immediately beneath, the proposed Posse pit at the Company's
wholly-owned, development-stage Mara Rosa Project in Brazil.
The current Posse deposit optimized pit design is based on an $1100/ounce gold
price (see corporate presentation, or the PFS report on Amarillo's website at
www.amarillogold.com). The proposed pit has a notable saddle zone between the
deeper southern and northern parts of the pit. A review of the block model
showed this saddle zone contained gold mineralization in the Inferred resource
category. An infill drilling program was initiated with the intent to convert
these Inferred ounces into the Indicated category. This 19 hole drilling program
has been completed and the summary assay results are listed in Table One below.
Table One: Infill Drill Hole Gold Assay Results At Saddle Zone, Posse Deposit.
---------------------------------------------------------------------------
Total True
Depth Azimuth From To Width Width Grade
Hole No. (metres) /Dip (metres) (metres) (metres) (metres) (g/t Au)
---------------------------------------------------------------------------
2011-MRP0001 225.26 140 142.5 145.0 2.5 2.3 8.95
degrees
/70
degrees
---------------------------------------------------------------------------
226.0 241.0 15.0 13.6 0.76
---------------------------------------------------------------------------
---------------------------------------------------------------------------
2011-MRP0002 248.18 140 226.0 241.0 15.0 13.6 0.76
degrees
/70
degrees
---------------------------------------------------------------------------
233.0 242.0 9.0 8.2 0.77
---------------------------------------------------------------------------
---------------------------------------------------------------------------
2012-MRP0001 143.15 140 0.0 14.0 14.0 13.2 0.82
degrees
/-65
degrees
---------------------------------------------------------------------------
32.0 42.0 10.0 9.4 0.97
---------------------------------------------------------------------------
---------------------------------------------------------------------------
2012-MRP0002 90.30 140 24.0 27.0 3.0 2.9 1.51
degrees
/-60
degrees
---------------------------------------------------------------------------
32.0 48.0 16.0 15.5 0.66
---------------------------------------------------------------------------
---------------------------------------------------------------------------
2012-MRP0003 90.57 140 23.0 40.0 17.0 16.4 2.70
degrees
/-60
degrees
---------------------------------------------------------------------------
---------------------------------------------------------------------------
2012-MRP0004 91.67 140 30.0 45.0 15.0 14.5 1.63
degrees
/-60
degrees
---------------------------------------------------------------------------
including 40.0 41.0 1.0 1.0 8.83
---------------------------------------------------------------------------
---------------------------------------------------------------------------
2012-MRP0005 120.00 140 89.0 103.0 14.0 13.5 0.94
degrees
/-60
degrees
---------------------------------------------------------------------------
---------------------------------------------------------------------------
2012-MRP0006 100.65 140 61.0 62.0 1.0 1.0 4.28
degrees
/-60
degrees
---------------------------------------------------------------------------
74.0 88.0 14.0 13.5 1.39
---------------------------------------------------------------------------
---------------------------------------------------------------------------
2012-MRP0007 100.66 140 43.0 44.0 1.0 1.0 2.93
degrees
/-60
degrees
---------------------------------------------------------------------------
67.0 82.0 15.0 14.5 2.39
---------------------------------------------------------------------------
---------------------------------------------------------------------------
2012-MRP0008 155.63 140 0.0 10.0 10.0 9.1 0.54
degrees
/-70
degrees
---------------------------------------------------------------------------
102.0 110.0 8.0 7.3 0.91
---------------------------------------------------------------------------
127.0 133.0 6.0 5.4 2.61
---------------------------------------------------------------------------
---------------------------------------------------------------------------
2012-MRP0009 94.68 140 12.5 17.5 5.0 4.3 0.62
degrees
/-75
degrees
---------------------------------------------------------------------------
31.0 39.0 8.0 6.9 0.63
---------------------------------------------------------------------------
54.0 58.0 4.0 3.5 1.64
---------------------------------------------------------------------------
64.0 75.0 11.0 9.5 1.79
---------------------------------------------------------------------------
---------------------------------------------------------------------------
2012-MRP0011 120.73 140 47.5 52.5 5.0 4.3 0.52
degrees
/-75
degrees
---------------------------------------------------------------------------
67.0 75.0 8.0 6.9 0.60
---------------------------------------------------------------------------
90.0 107.0 17.0 14.7 1.43
---------------------------------------------------------------------------
---------------------------------------------------------------------------
2012-MRP0012 91.65 140 0.0 4.0 4.0 3.5 0.83
degrees
/-75
degrees
---------------------------------------------------------------------------
23.0 42.0 19.0 16.5 2.47
---------------------------------------------------------------------------
Including 23.0 24.0 1.0 0.9 16.20
---------------------------------------------------------------------------
---------------------------------------------------------------------------
2012- 121.63 140 2.0 3.0 1.0 0.9 3.47
MRP0010A degrees
/-70
degrees
---------------------------------------------------------------------------
103.0 112.5 9.5 8.6 2.18
---------------------------------------------------------------------------
Including 106.0 107.0 1.0 0.9 11.90
---------------------------------------------------------------------------
---------------------------------------------------------------------------
2012-MRP0013 180.27 140 1.0 12.0 11.0 10.0 0.70
degrees
/-70
degrees
---------------------------------------------------------------------------
111.0 116.0 5.0 4.5 0.90
---------------------------------------------------------------------------
127.0 136.0 9.0 8.2 0.53
---------------------------------------------------------------------------
157.0 168.0 11.0 10.0 1.09
---------------------------------------------------------------------------
---------------------------------------------------------------------------
2012-MRP0014 158.72 140 4.0 9.0 5.0 4.9 0.55
degrees
/-55
degrees
---------------------------------------------------------------------------
80.0 85.0 5.0 4.9 1.32
---------------------------------------------------------------------------
Including 82.0 83.0 1.0 1.0 5.11
---------------------------------------------------------------------------
96.0 123.0 27.0 26.6 0.91
---------------------------------------------------------------------------
Including 115.0 116.0 1.0 1.0 5.13
---------------------------------------------------------------------------
---------------------------------------------------------------------------
2012-MRP0015 163.72 140 0.0 12.0 12.0 11.8 1.25
degrees
/-55
degrees
---------------------------------------------------------------------------
140.0 150.0 10.0 9.8 2.45
---------------------------------------------------------------------------
---------------------------------------------------------------------------
2012-MRP0017 330.49 140 262.0 286.0 24.0 23.2 0.88
degrees
/-60
degrees
---------------------------------------------------------------------------
Including 276.0 277.0 1.0 1.0 7.53
---------------------------------------------------------------------------
300.0 308.0 8.0 7.7 1.80
---------------------------------------------------------------------------
---------------------------------------------------------------------------
2012-MRP0018 330.62 140 269.0 280.0 11.0 10.6 0.87
degrees
/-60
degrees
---------------------------------------------------------------------------
288.0 300.0 12.0 11.6 2.01
---------------------------------------------------------------------------
Including 292.0 293.0 1.0 1.0 15.90
---------------------------------------------------------------------------
Notes: All drill hole samples shown here consist of split HTW and NTW
diamond drill core. The samples are sent to Acme Laboratories in Goiania,
Brazil, for preparation and then to Vancouver, Canada where, samples are
first subjected to a multi-element ICP assay that includes Au and then sent
to fire assay for Au using 30g aliquots. If the grade is higher than 5 g/t,
a gravimetric method is used. All samples are subject to a chain of custody
and are submitted with standards and blanks to check the assay results. The
laboratories also use internal standards and repeat analysis. For the
results reported in this release all the standards, blanks and repeats
delivered acceptable results. Intercepts were calculated using a minimum of
a 0.5 g/t cut off at the beginning and end of the intercept and allowing
for no more than 10 consecutive metres of less than 0.5 g/t Au. The true
width is calculated based on a dip 45 degrees +/-2 degrees for the Posse
deposit and are rounded to the nearest decimeter. Holes were drilled
perpendicular to strike.
Notes: All drill hole samples shown here consist of split HTW and NTW diamond
drill core. The samples are sent to Acme Laboratories in Goiania, Brazil, for
preparation and then to Vancouver, Canada where, samples are first subjected to
a multi-element ICP assay that includes Au and then sent to fire assay for Au
using 30g aliquots. If the grade is higher than 5 g/t, a gravimetric method is
used. All samples are subject to a chain of custody and are submitted with
standards and blanks to check the assay results. The laboratories also use
internal standards and repeat analysis. For the results reported in this release
all the standards, blanks and repeats delivered acceptable results. Intercepts
were calculated using a minimum of a 0.5 g/t cut off at the beginning and end of
the intercept and allowing for no more than 10 consecutive metres of less than
0.5 g/t Au. The true width is calculated based on a dip 45 degrees +/- 2 degrees
for the Posse deposit and are rounded to the nearest decimeter. Holes were
drilled perpendicular to strike.
The location of the drill holes reported here can be viewed in three dimensions
and by section in relation to all previous drilling on the Company's website at
www.amarillogold.com or at http://www.corebox.net/properties/mara-rosa.
None of the gold mineralization from the Saddle Zone area is currently
incorporated into the reserves and resources used in determining the economics
of the Posse deposit. Any gold mineralization that is upgraded into the
Indicated category as a consequence of this drilling program, will be additive
to the total potentially economic ounces available to the Mara Rosa project.
Amarillo has therefore contracted Mr. Keith Whitehouse of Australia Exploration
Field Services to carry out an updated resource estimate that will incorporate
the new drilling program results. Mr. Whitehouse is a qualified independent
geologist as per NI 43-101 guidelines and was responsible for the last resource
estimate conducted at the Posse deposit, which was the basis of the resource
used in the PFS. Mr. Whitehouse will also update the current block model and
this updated model will be used in the ongoing feasibility study at the Posse
deposit.
Several drill holes in this current program also intersected silver
mineralization separate to the gold mineralization hosted in the hanging wall
above the main gold zone. Table 2 below summarizes these drill assay results. A
similar silver mineralization intercept was also reported 500 metres to the
north of the drill results reported here. (See Amarillo's News Release dated
October 17th 2012). The geological significance of this silver mineralization is
still being assessed as it presents an interesting newly recognized mode of
mineralization at Posse.
Table 2. Drill Hole Silver Assay Results at Posse Deposit
---------------------------------------------------------------------------
Drill Hole From To Interval Ag g/t
---------------------------------------------------------------------------
2012-MRP0012 9.0 16.0 7.0 295.0
---------------------------------------------------------------------------
Including 14.0 15.0 1.0 1812.0
---------------------------------------------------------------------------
2012-MRP0010A 10.0 18.0 8.0 38.3
---------------------------------------------------------------------------
2012-MRP0014 2.0 5.0 3.0 28.3
---------------------------------------------------------------------------
2012-MRP0015 0.0 15.0 15.0 19.9
---------------------------------------------------------------------------
The author of this News Release is Buddy Doyle, a member of the AUSIMM, and a
geologist of 30 years experience. The NI 43-101 compliant Qualified Person for
this news release is Kevin Kivi, P.Geo.
About Amarillo Gold Corp.
Amarillo Gold Corp. is focused on acquisition, discovery, and definition of gold
resources in Brazil. The Company's principal projects are the Mara Rosa Project
in the state of Goias, and the Lavras do Sul Project in the state of Rio Grande
do Sul. The Posse Deposit at Mara Rosa contains 1,174,900 ounces of measured and
indicated gold contained in 20.85 MT at 1.75 g/t Au, and 156,400 ounces of gold
inferred from 3.63 MT at 1.38 g/t Au (0.5 g/t cut-off grade) (NI 43-101
compliant resource as independently determined by Australian Exploration Field
Services Pty. AEFS). The Mara Rosa Gold Project has received a positive economic
assessment from a Pre-feasibility study and is preparing to proceed to a
bankable feasibility study. Should this continue to be positive it would be
possible to commence mining by 2014.
The Posse Deposit was successfully mined by Western Mining Company (WMC) during
the 1990s (mined areas are excluded from the above-stated resource figures), and
is located in an area of excellent infrastructure: approximately 35 km NE of
Yamana's Chapada open pit Cu-Au operation, some 80 km NE of Yamana's Pilar Au
project (in Feasibility), 95 km NW of Votorantim's Niquelandia Ni laterite mine,
105 km from NE of Anglogold-Ashanti's Serra Grande underground Au mine, and 105
km NNW of Anglo American's Ni laterite project at Barro Alto.
The Lavras do Sul Project is an advanced exploration stage property (190 sq.
km.) comprising more than 19 prospects centred on historic gold workings, with
encouraging gold mineralization discovered and defined by more than 16,000
metres of drilling. The initial resource estimate at the Butia prospect reported
215,000 ounces of gold indicated from 6.4 MT at 1.05 g/t Au, and 308,000 ounces
of gold inferred from 12.9 MT at 0.74 g/t Au using a 0.3 g/t cut-off grade in a
NI 43-101 compliant resource as independently determined by Atticus Consulting
2010. Lavras do Sul is also located near excellent infrastructure. The Company
also has a portfolio of earlier stage projects and all properties under
Amarillo's management are located in areas of good infrastructure and
mining-friendly communities.
ON BEHALF OF THE BOARD OF DIRECTORS
AMARILLO GOLD CORP.
Buddy Doyle, President
FORWARD LOOKING STATEMENTS:
This news release contains Forward Looking Statements regarding our intentions
and plans. Various factors may prevent or delay our plans, including but not
limited to, contractor availability and performance, weather, financing, access,
mineral prices and success and failure of the exploration and development
carried out at various stages of the program. Permission from the government and
community is also required to proceed with future mining production. Readers
should review risk factors applicable to junior mining exploration companies
generally to understand the variety of risks that can affect the Company.
FOR FURTHER INFORMATION PLEASE CONTACT:
Amarillo Gold Corp.
+ 1-604-689-1799 (Canada)
+55-31-3261-5974 (Brazil)
info@amarillogold.com
www.amarillogold.com
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